Salesforce, Inc.CRM
NYQ • Technology
$205.43
P/E
23.67
PEG
0.64
FCF Yield
8.6%
Rev Growth YoY
+13.3% YoY
Gross Margin
76.9%
Health Score
8/10
D/E Ratio
1.15
Confidence
MEDIUM
Business Snapshot
Salesforce operates as a leading provider of cloud-based customer relationship management (CRM) software, with its core platform spanning sales, service, marketing, and analytics applications for enterprise customers. The company holds a dominant competitive position in the CRM software market, competing primarily against Microsoft, Oracle, and SAP in the enterprise application space. With a market capitalisation of $168.25B, Salesforce is a large-cap technology company generating TTM revenue of $42.83B, placing it among the largest pure-play software vendors globally. The defining characteristic of Salesforce is its recurring subscription revenue model, evidenced by a strong 76.9% gross margin, which reflects the scalability and stickiness of its cloud-based platform.
Financial Health
Gross margin stands at 76.9%, down slightly from 77.6% in the prior year, while net margin of 18.7% indicates solid profitability after operating expenses. The balance sheet shows debt/equity of 1.15x with a current ratio of 0.79x, suggesting the company relies on operating cash flow and long-term financing rather than short-term liquidity to fund operations...
Risk Assessment
- DEBT / LIQUIDITY — Current ratio of 0.79x is below 1.0x, indicating short-term liabilities exceed short-term assets and the company depends on ongoing cash generation to meet near-term obligations.
- REVENUE DECELERATION — Quarterly revenue declined -0.6% QoQ despite 13.3% YoY growth, signalling that recent momentum may be slowing sequentially.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- 52-WEEK POSITION — Current price of $205.43 sits 23.7% below the 52-week high of $269.11, reflecting that the stock has yet to recover its prior peak.
- MARGIN CONTRACTION — Gross margin declined from 77.6% to 76.9% year-over-year, suggesting minor pricing pressure or cost increases at the gross profit level....
Gross margin stands at 76.9%, down slightly from 77.6% in the prior year, while net margin of 18.7% indicates solid profitability after operating expenses. The balance sheet shows debt/equity of 1.15x with a current ratio of 0.79x, suggesting the company relies on operating cash flow and long-term financing rather than short-term liquidity to fund operations. Free cash flow is robust at $14.40B, translating to an FCF yield of 8.6%, demonstrating the company's strong cash generation capability. Return on equity of 16.9% reflects efficient capital deployment, and the combination of healthy FCF, moderate leverage, and double-digit profitability gives Salesforce ample capacity for share buybacks, acquisitions, and strategic reinvestment.
- DEBT / LIQUIDITY — Current ratio of 0.79x is below 1.0x, indicating short-term liabilities exceed short-term assets and the company depends on ongoing cash generation to meet near-term obligations. - REVENUE DECELERATION — Quarterly revenue declined -0.6% QoQ despite 13.3% YoY growth, signalling that recent momentum may be slowing sequentially. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - 52-WEEK POSITION — Current price of $205.43 sits 23.7% below the 52-week high of $269.11, reflecting that the stock has yet to recover its prior peak. - MARGIN CONTRACTION — Gross margin declined from 77.6% to 76.9% year-over-year, suggesting minor pricing pressure or cost increases at the gross profit level.
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